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HomeMy WebLinkAboutRe: Request for council action/subdivision REQUEST FOR COUNCIL ACTION DATE: May 22, 1998 ITEM NO: a p`� Department Approval: Administrator Reviewed: Agenda Section: Name Ron Moorse f/ City Administrator's Title City Administrator C� Report Item Description: Robert and Julie Hanning Request Related to Future Subdivision at 4220 Sixth Avenue North When the County Road 6 project was being planned, the Hannings had expressed concern that the right-of-way needed by the County would reduce the area of their property below the amount needed to be able to create a second lot in the future. The Council had indicated that if the right-of-way acquisition would reduce the lot area below the required amount, the Council would consider entering into an agreement to maintain the ability to create a second lot. Staff has recently clarified the current status and post-right-of-way acquisition status of the property, and the Hannings'plans for subdividing the property. Maps showing these are attached. According to staff s calculations, the property includes 10+ acres of dry buildable land, both before and after the right-of-way acquisition. However, because of the location of the current home and the desire of the Hannings to retain an open meadow area, their plan for the future lot to the east includes a somewhat gerrymandered lot line to maintain the 5 acre lot area. The County right-of-way acquisition creates a further problem far the Hannings in that even though the total dry buildable area of the property continues to exceed 10 acres,creating a second lot with the fu115 acres would require the lot line to be run closer to the existing structures on the homestead site, and would require a significant portion of the new lot to be behind the existing structures. This would create concerns regarding privacy,and creates the potential for conflict between the owners of the two lots in relation to boundary lines and use of the rear portions of both properties. To avoid this situation, the Hannings are requesting that the City support the Hannings' initial subdivision plan even though the second lot would not meet the minimum lot standard of 5 acres. Policy The City's policy regarding land subdivision is that the City does not grant variances to lot area for new lots. In the Hannings case,it is possible to create a lot that meets the lot area requirement, but the lot configuration necessary to do this is not acceptable to the Hannings. Legal Issues The City Attorney has expressed concern regarding the City entering into a contractual agreement to approve a lot area variance at some point in the future. This is contrary to the public process normally involved in the City's consideration of a variance application. 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"�� L�'•:p. \ . � . .:�. , ��� �� � � � �,. ��� ) � , � , � �� � ..- :;:�; v �i�� �' � �l ����'� � � � — �� � ,�, � .. . �`' �� ' ` : - � �' ���� �, s o�s�� �-�,�.�� . REQUEST FOR COUNCIL ACTION DATE: June 19, 1998 ITEM NO: �� Department Approval: Administrator Reviewed: Agenda Section: Name Ron Moorse City Administrator's Title City Administrator �'�� Report Item Description: Robert and Julie Hanning Request Related to Future Subdivision at 4220 Sixth Avenue North Background When the County Road 6 project was being planned, the Hannings had expressed concern that the right-of-way needed by the County would reduce the area of their property below the amount needed to be able to create a second lot in the future. The Council had indicated that if the right-of-way acquisition would reduce the lot area below the required amount, the Council would consider entering into an agreement to maintain the ability to create a second lot. In clarifying the current status of the property, staff has determined the property includes 10+ acres of dry buildable land, both before and after the County Road 6 right-of-way acquisition. However, because of the location of the current home and the desire of the Hannings to retain an open meadow area, their plan for the future lot to the east includes a somewhat gerrymandered lot line to maintain the 5 acre lot area. The County right-of-way acquisition creates a further problem for the Hannings in that,even though the total dry buildable area of the property continues to exceed 10 acres,creating a second lot with the fu115 acres would require the lot line to run closer to the existing structures on the homestead site and would require a significant portion of the new lot to be behind the existing structures on the homestead site. This could create concerns regarding privacy, and creates the potential for conflict between the owners of the two lots in relation to the boundary lines and use of the rear portions of both properties. Hannings' Request To minimize the negative impacts of a gerrymandered second lot on the homestead parcel, the Hannings are requesting that the amount of land required for the second lot be reduced by the amount of the County Road 6 right-of-way acquisition. Impact on Right-of-Way Acquisition Process The County's acquisition of the right-of-way from the Hannings is being accomplished through a condemnation process, with efforts being made to reach a negotiated agreement on the amount of compensation for the right-of-way acquired. The County has offered the Hannings an amount based Request for Council Action continued Page 2 June 19, 1998 Robert and Julie Hanning Request Related to Future Subdivision at 4220 Sixth Avenue North on the number of square feet of land acquired. It is staff s understanding that this is acceptable to the Hannings if they can be assured they are able to subdivide the properly to create an acceptable second lot at some time in the future. The Hannings believe that this cannot occur unless the City allows the area of the second lot to be reduced by the amount of the County's right-of-way acquisition. If the City will not allow the reduced lot area,the Hannings will take the position that their compensation for the right-of-way taking needs to be more than the payment for the 23,000 square feet of land acquired. Rather, it should reflect the taking of a buildable lot, or substantial damages to the homestead lot. Impact of the Right-of-Way Acquisition on the Value of the Hannings' Property Because the right-of-way acquisition is not reducing the total dry buildable area to less than 10 acres, it would be difficult to make the case that the right-of-way acquisition is taking a buildable lot. The Hannings may be able to make the case that the right-of-way taking would cause a subdivision to have a greater negative impact on the existing house. It is not clear what type of value would be placed on this negative impact, since a subdivision prior to the right-of-way acquisition would also have had a negative impact on the existing house. Council Direction At its May 26 meeting, the Council directed staff to determine the exact amount of right-of-way being acquired and to work on a possible subdivision scheme. There also appeared to be some support on the Council to reduce the lot area requirement for the second lot by the amount of the right-of-way acquisition. Impact of Right-of-Way Acquisition on Potential Subdivision Staff has developed a number of options for subdividing the property, both pre-right-of-way acquisition and post-right-of-way acquisition. These are attached. Settlement Agreement There are instances where the City has entered into a settlement agreement with properly owners when the City has acquired right-of-way that has reduced the amount of remaining property to less than the amount required for a buildable lot. The Hannings' situation is different from two perspectives. 1. The City is not reducing the amount of property to less than the amount required for two lots. 2. 'The City is not the party acquiring the property and is not the party involved in the condemnation process. The City has an interest in this process because the property is in Orono, and because the City will pay 50%of the right-of-way acquisition costs. Request for Council Action continued Page 3 June 19, 1998 Robert and Julie Hanning Request Related to Future Subdivision at 4220 Sixth Avenue North Legal Issues The City Attorney has expressed concern regarding the City entering into a contractual agreement to approve a lot area variance without the public process normally involved in the City's consideration of a variance application. The City Attorney has also indicated that because the City is not a direct party to the right-of-way acquisition process or the condemnation process,it may not be possible for the City to grant the lot area variance through a settlement agreement. The Attorney is researching this issue and will provide an opinion at the Council meeting. Process The normal process for considering a request to create a lot with less than the required lot area would be a variance process through the Planning Commission. For a number of reasons,the Hannings do not want to subdivide the property at this time. The Hannings are requesting the City provide, through some means,assurance that if the properly is subdivided at some point in the future the new lot could be 23,000 s.£ less than 5 acres. They need to have this assurance at this time because it affects the position they take regarding the level of compensation they should receive for the right- of-way acquisition. Policy The City's policy regarding land subdivision is that the City does not grant variances to lot area for new lots. In the Hannings case, it is possible to create a lot that meets the lot area requirement, but the lot configuration necessary to do this is not acceptable to the Hannings. Options 1. The City may be able to enter into a settlement agreement with the Hannings providing that the second lot could be created with an area 23,000 s.f. less than 5 acres, subject to agreement on the level of compensation to be received for the right-of-way acquisition. 2. The Council could indicate general support for a lot area variance. 3. The Council could take no action and allow the level of compensation to the Hannings for the right-of-way acquisition to be set through the condemnation process. COUNCIL ACTION REQUESTED: Motion in response to the Hannings'request for an agreement to allow a second lot to be created with an area of 23,000 s.f. less than 5 acres. . 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